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Enrolled SB 156
LAWS OF ALASKA
2025
Source Chapter No.
HCS CSSB 156(FSH) _______
AN ACT
Relating to the Department of Co mmerce, Community, and Economic Development; relating
to the Alaska Commercial Fishing and Agriculture Bank; relating to certain loans made by the
Alaska Commercial Fishing and Agriculture Bank; relating to cer tain commercial fishing
loans; and providing for an effective date.
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1
-1- Enrolled SB 156
AN ACT
Relating to the Department of Co mmerce, Community, and Economic Development; relating 1
to the Alaska Commercial Fishing and Agriculture Bank; relating to certain loans made by the 2
Alaska Commercial Fishing and Agriculture Bank; relating to cer tain commercial fishing 3
loans; and providing for an effective date. 4
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* Section 1. The uncodified law of the State o f Alaska is amended by adding a new section 6
to read: 7
ALASKA COMMERCIAL FISHING AND AGRICULTURE BANK; LOANS. (a) 8
Subject to legislative appropria tion, the Department of Commerc e, Community, and 9
Economic Development shall purchase nonvoting, preferred shares i s s u e d b y t h e A l a s k a 10
Commercial Fishing and Agriculture Bank established under AS 44.81.010 for the purpose of 11
enabling the bank to make loans to persons involved in the state's commercial fishing industry 12
under AS 44.81.215. Except as provided in (d) of this section, the bank shall repurchase 13
shares the department purchased under this section 20 years aft er the purchase. If the bank 14
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fails to repurchase the shares 20 years after the purchase by t he department, the commissioner 1
of commerce, community, and ec onomic development may appoint a receiver to direct, 2
manage, and operate the bank until the shares have been repurch ased. Upon voluntary or 3
involuntary liquidation of the b ank, and upon repayment of all legal debts and obligations of 4
the bank, all nonvoting, preferred shares owned by the departme nt have priority for 5
redemption over all other forms and amounts of ownership of the bank. 6
(b) The Alaska Commercial Fishing and Agriculture Bank may not o r i g i n a t e o r 7
refinance a loan under this sec tion unless the loan is secured, or secured in part, by a limited 8
entry permit issued under AS 16.43 that has been pledged by the holder as collateral. A loan 9
made by the bank using funds pr ovided by the Department of Comm erce, Community, and 10
Economic Development's purchase of shares under this section 11
(1) shall have a fixed term of 15 years; 12
(2) shall have a fixed interest rate; 13
(3) may not bear interest 14
(A) exceeding the prime rate, as defined in AS 44.88.599, plus t w o 15
percentage points; or 16
(B) at a rate of more than 5.25 percent a year. 17
(c) On the effective date of sec. 4, ch. 25, SLA 2024, the Ala ska Commercial Fishing 18
and Agriculture Bank shall provide the division within the Depa rtment of Commerce, 19
Community, and Economic Development that is responsible for ban king and securities a list 20
of each loan originated or refinanced under (b) of this section , with confidential borrower 21
information redacted. The list must include, for each loan, 22
(1) the loan number, principal balance, interest rate, and loan term; 23
(2) a copy of the loan agreement; 24
(3) an amortization schedule, inc luding the comparison made under (4) of this 25
subsection; 26
(4) a comparison of 27
(A) the loan's baseline interest earnings, calculated as the p rojection of 28
the refinanced or originated loan's interest using the principa l and the interest rate in 29
effect for the loan before it wa s refinanced, or the interest r ate and term that the loan 30
would have had if the loan had not been made by the Alaska Comm ercial Fishing and 31
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Agriculture Bank under (b) of this section, amortized over a 15 -year term assuming 1
timely loan payments; and 2
(B) the loan's post-refinance or post-origination interest ear nings, 3
calculated as the loan's projected interest earnings using the loan's principal, the loan's 4
actual interest rate as origina ted or refinanced under (b) of t his section, and a 15-year 5
term assuming timely loan repayments; and 6
(5) any other information that the division may need to complete the review. 7
(d) Within 120 days after the A laska Commercial Fishing and Ag riculture Bank 8
provides the Department of Comme rce, Community, and Economic De velopment the list 9
required under (c) of this section, the department shall conduct a one-time review of the listed 10
information. If the department determines that the difference in projected interest earnings for 11
all loans originated or refinanced under (b) of this section fo r the Alaska Commercial Fishing 12
and Agriculture Bank, as calculated under (c) of this section, is less than the par value of the 13
shares purchased by the department under (a) of this section, t he department shall request that 14
the bank repay the difference to the department by buying back the requisite quantity of 15
shares. 16
(e) If the Department of Comme rce, Community, and Economic Dev elopment 17
requests that the Alaska Commercial Fishing and Agriculture Ban k buy back the shares under 18
(d) of this section, the bank shall buy back the shares within 30 days. 19
(f) Subject to appropriation, the Department of Commerce, Comm unity, and 20
Economic Development shall purchase shares issued by the Alaska Commercial Fishing and 21
Agriculture Bank under (a) of this section using an amount equal to the amount that was in the 22
former Alaska capstone avionics r evolving loan fund (former AS 44.33.650 - 44.33.690) and 23
was unobligated on July 1, 2020. 24
* Sec. 2. Section 1 of this Act is repealed January 1, 2027. 25
* Sec. 3. This Act takes effect immediately under AS 01.10.070(c). 26